Self assessment dividend question Self assessment dividend question
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  1. #1

    Nervous Newbie


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    Default Self assessment dividend question

    Hi,

    I'm coming to do my self assessment for 2019/20. I am a director of my own company, so I've paid myself dividends periodically.

    I paid myself a small dividend at the end of that year although I just realised I paid it after my self assessment year end (by 30 days). This means it will now be accounted for in my 2020/21 self assessment.

    Is there any way I can ensure it'll be accounted for in the 2019/20 self assessment year when I meant it to be, or does it have to be accounted for in the year it was paid?

    Thanks

  2. #2

    Default Self assessment dividend question

    No

    Yes


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  3. #3

    Super poster

    Scruff's Avatar
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    Yes. The payment date, and the dividend declaration date can be different. The minute in which you declare the dividend will have the date of the declaration. This is all subject to the usual rules surrounding dividends.

    A journal entry

    Debit "Dividend Paid"
    Credit "Shareholders for Dividend"

    With the amount.

    On payment, allocate the payment to "Shareholders for Dividend".
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

  4. #4

    My post count is Majestic

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    Yes

    No.
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  5. #5

    Fingers like lightning


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    Default

    Quote Originally Posted by chomps View Post
    Hi,

    I'm coming to do my self assessment for 2019/20. I am a director of my own company, so I've paid myself dividends periodically.

    I paid myself a small dividend at the end of that year although I just realised I paid it after my self assessment year end (by 30 days). This means it will now be accounted for in my 2020/21 self assessment.

    Is there any way I can ensure it'll be accounted for in the 2019/20 self assessment year when I meant it to be, or does it have to be accounted for in the year it was paid?

    Thanks
    What does your dividend document say? The declaration date is the date that it counts for self assessment tax purposes. The dividend payment date is the earliest date it can be paid which can be either the same date as the declaration date or later.

  6. #6

    Fingers like lightning


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    Quote Originally Posted by Scruff View Post
    Yes. The payment date, and the dividend declaration date can be different. The minute in which you declare the dividend will have the date of the declaration. This is all subject to the usual rules surrounding dividends.

    A journal entry

    Debit "Dividend Paid"
    Credit "Shareholders for Dividend"

    With the amount.

    On payment, allocate the payment to "Shareholders for Dividend".
    Debit Dividends, Credit DLA

  7. #7

    Super poster

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    Quote Originally Posted by Craig@Clarity View Post
    Debit Dividends, Credit DLA
    What if the Director isn't a Shareholder? Self assessment dividend question
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

  8. #8

    Fingers like lightning


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    Quote Originally Posted by Scruff View Post
    What if the Director isn't a Shareholder? Self assessment dividend question
    Then you'd be correct. I was just stating it for the benefit of the OP that's all.

  9. #9

    Default

    As others have said, the declaration date is what matters. A delay in payment is just a matter of accounting w/r to the DL account.

    Don't try to edit your dividend paperwork retrospectively.

  10. #10

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by chomps View Post
    I paid myself a small dividend at the end of that year
    If it's genuinely only a small dividend, then just leave it in this year.

    If you're being economical with the truth, then other posters have offered you the right advice.
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